BI Holds Interest Rates: Optimal Investment Strategy for General Insurance
JAKARTA. Bank Indonesia’s (BI) decision to maintain its benchmark interest rate at 4.75% during the February 2026 Board of Governors’ Meeting (RDG) has been viewed positively by the general insurance industry.
PT Asuransi Jasa Indonesia (Jasindo) believes that interest rate stability, coupled with exchange rate stability, constitutes a vital foundation for business certainty, effective risk management, and sustainable investment performance in the insurance sector.
According to Jasindo’s Corporate Secretary, Brellian Gema Widayana, the consistent interest rate policy will not alter the investment strategy already designed by the company.
“This policy is in line with the company’s expectations. Therefore, Asuransi Jasindo has no plans to change the direction of its established investment strategy,” Brellian told Kontan on Saturday (21/2/26).
In terms of portfolio management, Jasindo employs a Liability Driven Investment (LDI) strategy. This approach aims to ensure that the company’s asset management aligns with its liability profile, thereby achieving an optimal balance.
Brellian added that relatively low interest rates have had a positive impact on bonds, which have experienced price increases. Meanwhile, mutual funds remain an attractive investment option, with movements following the type and underlying assets of each mutual fund product.
Nevertheless, Jasindo sees no need to alter its current investment composition. The prevailing interest rate conditions already align with the company’s investment strategy established through to 2026.
Furthermore, Brellian affirmed that bonds will remain the primary instrument in Jasindo’s investment portfolio. This is intended to capitalise on the momentum of rising bond prices whilst simultaneously aligning with the company’s liability profile.
Similarly, PT Asuransi Wahana Tata (Aswata) also holds the view that the interest rate hold will not have a significant direct impact on the insurance industry’s business.
Aswata’s President Director, Christian Wanandi, emphasised the importance of interest rate policy stability. This stability provides the company’s investment team with the opportunity to predict business conditions more accurately.
“What matters most is stability. This way, the investment team can make better business predictions,” he said on Friday (20/2/26).
Christian explained that with interest rates stable at their current level, the company’s investment yield targets can still be achieved in accordance with existing plans.
Additionally, deposits are still considered an attractive and relevant investment instrument as part of the company’s investment portfolio, particularly under conditions of relatively stable interest rates.
Meanwhile, the Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, also affirmed that general insurance investment portfolios are not expected to undergo significant changes, given that interest rates have likewise remained unchanged.
“I believe the existing composition will not change significantly,” he explained.
As additional context, based on data from the Financial Services Authority (OJK) for 2025, total general insurance investments reached Rp 131.43 trillion. The majority of these investments were allocated to Government Securities (SBN), valued at Rp 47.21 trillion.